The Importance of CIBIL Score When Seeking Unsecured Loans

Written by Aditya Kumar  »  Updated on: June 03rd, 2025

When it comes to applying for unsecured loans, your credit score often carries more weight than your bank balance. In India, the CIBIL score has become a key factor in determining whether you’re eligible for credit, especially unsecured loans where no asset is pledged.

This three-digit number is much more than a formality. It signals to lenders how responsibly you’ve handled credit in the past and gives them a level of confidence about your repayment ability. In the absence of collateral, your creditworthiness becomes the main criteria.

What is a CIBIL Score And Why is It Important?

A CIBIL score ranges between 300 and 900 and reflects your credit history, including loan repayments, credit card bills, and credit usage patterns. The closer your score is to 900, the more favourable your profile is in the eyes of lenders.

Unsecured loans—like Personal Loans or emergency loans—do not require you to pledge an asset. Because of this, lenders rely heavily on the CIBIL score to decide whether or not to extend credit, how much to lend, and on what terms.

How Your Cibil Score Impacts Unsecured Loan Approval

Here are the main ways your credit score influences your ability to get an unsecured loan:

1. Eligibility Criteria

Most lenders prefer applicants with a CIBIL score above 700. A low score may lead to outright rejection or require additional guarantees.

2. Loan Amount Offered

A high credit score can help you secure a larger loan. A lower score may limit the amount you qualify for, or subject you to stricter terms.

3. Interest Rates And Charges

If your score is good, you’re likely to be offered competitive interest rates. A poor score, on the other hand, might mean higher rates and additional fees.

4. Approval Time

Lenders often fast-track applications from individuals with higher scores, as they are perceived to be lower-risk borrowers.

Applying Without A Salary Slip: Is It Possible?

Securing an urgent cash loan without salary slip is not easy, but not impossible either. Some financial institutions and fintech platforms allow alternate income proofs such as bank statements, Form 16, income tax returns, or freelance invoices.

However, in such cases, your CIBIL score becomes even more important. With limited income documentation, lenders rely more on your credit history to make lending decisions.

How A Low Credit Score Creates Hurdles?

If your score is below 650, you may face:

  • Repeated loan rejections, which can further damage your score
  • The need for a guarantor or co-signer
  • Higher interest rates and unfavourable terms
  • Limited loan options or smaller loan amounts

This is why it's essential to know how to increase CIBIL score from 600 to 750, especially if you plan to apply for credit in the near future.

How To Increase Cibil Score From 600 To 750

If your credit score isn’t where you want it to be, don’t worry—there are clear and practical steps you can take to improve it. Improving your score is not an overnight task, but with consistency and smart financial behaviour, you can make measurable progress over time.

1. Pay Bills on Time

Late or missed payments can hurt your score significantly. Always pay your EMIs, credit card bills, and loan instalments before the due date. Timely payments indicate financial reliability, which is the most critical factor in your credit score calculation.

2. Use Credit Wisely

Keep your credit card utilisation below 30% of the total limit. High utilisation suggests over-reliance on borrowed money and could lower your score. Maintaining a low balance shows lenders you manage credit responsibly and within limits.

3. Avoid Multiple Loan Applications

Each loan or credit card application creates a hard inquiry on your credit report. Too many inquiries in a short period can signal financial stress and lower your score. Instead, research options and apply selectively.

4. Maintain a Balanced Credit Mix

Having both secured (like home or car loans) and unsecured credit (like Personal Loans or credit cards) indicates responsible financial planning. A healthy mix improves your credit profile in the eyes of lenders.

5. Check Your Credit Report Regularly

Look for errors, outdated information, or unauthorised activity that might be dragging down your score. You’re entitled to one free credit report per year from each bureau—use it, and raise disputes if needed.

Over time, these actions can help you gradually move your score up. For many, it is possible to go from 600 to 750 within a year if consistent efforts are made. Patience, discipline, and monitoring are key to achieving a healthier credit score.

Can You Get A Loan With A Low Cibil Score?

Yes, obtaining an urgent Personal Loan with a poor credit score is possible, though your choices may be fewer. Some lenders, including platforms like Zype, assess other eligibility factors as well so you might still qualify even if your credit score isn’t ideal.

Keep in mind, though, that such loans often come with higher interest rates and stricter repayment terms. In some cases, lenders might ask for alternative documentation or guarantees.

Why Credit Score Matters Even More Without Salary Slips

When you lack conventional proof of income, lenders become more cautious. In such scenarios, a strong credit score can work in your favour. It demonstrates that you’ve responsibly managed credit in the past, even if your earnings are not formally documented.

For those seeking an urgent cash loan without salary slip, building and maintaining a solid CIBIL score can be the key to unlocking credit access.

Conclusion: Build Your Credit, Unlock Your Options

Your CIBIL score acts as your financial reputation. Especially when applying for unsecured loans, it can determine whether your application is approved, what interest rate you get, and how much you can borrow.

Knowing how to increase CIBIL score from 600 to 750 isn’t just useful—it’s empowering. By taking small but consistent steps, you can improve your credit standing and secure better loan terms in the future.

If you're trying to access funds without traditional documents like salary slips, your score may become the most important tool in your financial journey. Maintain it well, and it can open doors when you need them most.


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